Thanks for sharing the letter from legal consultant with us. We have shared this with PwC and they have in turn seek their tax team and their findings are below:
· Annual membership fees paid to ACRAA differs from fees paid to Moody’s
· Nature of payment of Moody’s is information purchase and considered as royalty (as information is not public, confidential and Moody has proprietary right)
· Need to withhold tax on such payments.
Appreciate it if you could start to withhold tax for any such payments made to Moody’s for this purposes.